Government schemes FAQ

4. Can I get a loan from the government to buy a house?

To be at par with the growing demand in the country. The Indian government has introduced a substantial amount of schemes in order to encourage affordable housing for every individual! Let us look into some of the government schemes for your next home:

• Pradhan Mantri Awas Yojana (PMAY) (Urban)

• Pradhan Mantri Gramin Awaas Yojana

• The Rajiv Awas Yojana (RAY)

• Delhi Development Authority Housing Scheme, 2018

• Tamil Nadu Housing Board Scheme (TNHB)

• Maharashtra Housing And Area Development Authority (MHADA), 2018

• NTR Urban Housing Scheme

With the introduction of Pradhan Mantri Awas Yojana(PMAY), you can purchase a newly constructed house for sale and also receive a housing loan from the PMAY scheme. Society having lower income brackets can enjoy the perk of receiving housing loans offered by the PMAY scheme.

5. What taxes and fees we are required to pay while buying a house?

Property purchase tax and payments with no doubt come into the picture once you get into clearing the formalities. The following is the schedule you have to clear up:

• Registration Fees: You need to pay 1% of the property value as registration fees

• Stamp Duty: You need to pay between 5-6% of the property value as a stamp duty.

• Good and service tax(GST): We are already aware of GST on flat purchase tax as it directly relates to the asset.

• Tax deduction at source(TDS): Once you decide to buy a property, you need to pay TDS to the government to transfer the property.

Under the Income Tax Law, any "person", any residential person, is responsible for paying the tax on the land they are residing in. The residential duty and stamp duty should be paid by the home buyer during the time of registration.

6. How important is RERA approval in terms of Gated communities?

Before you can buy a property you need to be sure of why you need to invest in it and how will it benefit you. However, in order to prevent fraudulent activities it is necessary to check if the property you are planning to invest in has RERA approval as it ensures on-time construction of the project and it is a big relief to homebuyers as it ensures transparency. Every residential and commercial project must be registered under RERA. As for residential gated communities, RERA is no exception. Thus, it is important that you check whether the gated community is approved by RERA before considering purchasing it.

7. What is the price appreciation if I am buying a property today and what are the factors that are involved in bringing in such changes?

When we talk about the future perspective of the property you are buying today, you need to understand that investment in a property is like an investment for a lifetime! Provided that, the house you are buying today is bound to the convenience of an individual. The price of the property is unpredictable but it is likely to be high as the need for a home is never-ending in the population we are among today! Factors like public transport connectivity, amidst a lively area, meeting all the basic requirements of a human being, etc are a few of such factors that result in real estate appreciation.

8. What are the approvals required for construction in Real Estate?

Irrespective of whether you are investing in a real estate investor or a home buyer or a building developer, the need for verifying approval is a must. The building plan approval requirements are something that you should be aware of before investing in any property. In the case of real estate construction, Approvals from the Government departments of Electricity, Water, Airport, Ownership Certificate Municipal department, the Ministry of Environment, and in some cases, Approvals from Aviation and coastal authority are also a must! Here we are with a list of documents required for building plan approval which will relieve you from the stress of any hassles in the future.

9. What is the Mudra Yojana?

The Mudra Yojana is a flagship plan of the Indian government that provides financial support to micro and small businesses. This project intends to support the non-corporate, non-farm sector by offering loans of up to ₹10 lakh for income-generating activities. Mudra Yojana helps entrepreneurs, fosters job creation, and contributes to general economic growth by making loans more accessible.

10. What is the Pradhan Mantri Fasal Bima Yojana (PMFBY)?

The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a comprehensive crop insurance scheme implemented by the Indian government to protect farmers from financial losses caused by natural disasters, pests, and diseases. This effort intends to secure farmers' incomes by providing insurance coverage for a wide range of crops, including food grains and commercial products. Farmers who insure their crops under PMFBY can reduce the chance of crop failure while also ensuring a consistent income, supporting agricultural sustainability and food security in the country.

11. How can I report a fraudulent government scheme?

Reporting a fraudulent government plan is critical for protecting the public and preserving government resources. If you feel a plan is fraudulent, report it immediately to the appropriate authorities. The administration has set up designated channels for such complaints. You can contact the appropriate department or ministry directly, or use the government's anti-fraud helpline. By reporting fraudulent actions, you contribute to an open and accountable government system while also preventing financial losses to the public exchequer.

12. What documents are required for government scheme applications?

The documentation required for government scheme applications can vary significantly based on the specific scheme and its objectives. However, certain documents are commonly requested. These typically include proof of identity, such as Aadhaar card, PAN card, or voter ID; address verification through documents like ration card, electricity bill, or passport; and age proof, often in the form of birth certificate or educational certificates. Income certificates, caste certificates (for specific categories), and disability certificates may also be necessary depending on the scheme's eligibility criteria. It is essential to carefully review the specific document requirements outlined for each government scheme to ensure a smooth application process.

13. What is the Ayushman Bharat Yojana?

Ayushman Bharat is the flagship public health insurance policy in India. Designed to achieve the ideal goal of Universal Health Coverage (UHC), it seeks to provide economic stability to society's most vulnerable and marginalized groups. Ayushman Bharat aims to lower catastrophic health costs for millions of Indians by providing comprehensive health coverage of up to Rs. 5 lakh per family per year for secondary and tertiary care hospitalization. This ambitious program is a huge step toward making healthcare more accessible and affordable for all.

There you go, folks. These are some most frequently asked questions(FAQs) on government schemes by first time home buyers.